Connect with us
[the_ad id="89560"]

Business

WEF panelist suggests COVID response accustomed people to the idea of CBDCs

Published

8 minute read

Central Bank of Bahrain governor Khalid Humaidan

From LifeSiteNews

By Tim Hinchliffe

When asked how he would convince people that CBDCs would be a trusted medium of exchange, Bahrain’s central bank governor said that COVID made the digital transformation ‘something of a requirement’ that had ‘very little resistance.’

Central bank digital currencies (CBDCs) will hopefully replace physical cash and become fully digital, a central banker tells the World Economic Forum (WEF).

Speaking at the WEF Special Meeting on Global Collaboration, Growth and Energy Development on Sunday, Central Bank of Bahrain governor Khalid Humaidan told the panel “Open Forum: The Digital Currencies’ Opportunity in the Middle East” that one of the goals of CBDC was to replace cash, at least in Bahrain, and to go “one hundred percent digital.”

Humaidan likened physical cash to being an antiquated “analogue” technology and that CBDC was the digital solution that would hopefully replace cash:

“I thank this panel and this opportunity. It forced me to refine my thoughts and opinions where I’m at a place comfortably now that I’m ready to verbalize what I think about CBDC,” said Humaidan.

If we think cash is the analogue and digital currency is the form of digital – CBDC is the digital form of cash – today, clearly we’re in a hybrid situation; we’re using both.

We know in the past when it comes to cash, central bankers were very much in control with all aspects of cash, and now we’re comfortable to the point where the private sector plays a big role in the printing of the cash, in the distribution of the cash, and with the private sector we use interest rates to manage the supply of cash.

The same thing is likely to happen with CBDC. Yes, the central bank will have a role, but at some point in time – the same way we don’t call it ‘central bank cash’ – we’re probably going to stop calling it central bank digital currency.

“It’s going to be a digital form of the cash, and at some point in time hopefully we will be able to be one hundred percent digital,” he added.

When asked how he would convince people that CBDC would be a trusted medium of exchange, Bahrain’s central bank governor said that people were already used to it and that COVID made the digital transformation “necessary” and “something of a requirement” that had “very little resistance.”

“Right now, many of our payments are digital. The truth is, I said that we’re in a hybrid model; there’s less and less use of cash,” said Humaidan.

I think from predominantly digital with a little physical, I think the transition to fully digital is not going to be a stretch.

People are used to it, people have engaged in it and certain circumstances did help. Its adoption rates increased because of COVID.

“This is where contactless started to become something of a necessity, something of safety, something of a requirement, and because of that there is very little resistance; trust is already there,” he added.

Meanwhile, European Central Bank president Christine Lagarde has been going around the world telling people that the digital euro CBDC would not eliminate cash, and that cash would always be an option.

Speaking at the Bank for International Settlements (BIS) Innovation Summit in March 2023, Lagarde said that a digital currency will never be as anonymous as cash, and for that reason, cash will always be around.

“Is it [digital euro] going to be as private as cash? No,” she said.

A digital currency will never be as anonymous and as protecting of privacy in many respects as cash, which is why cash will always be around.

If people want to use cash in some countries or in some transactions, cash should be available.

“A digital currency is an alternative, is another means of payment and will not provide exactly the same level of privacy and anonymity as cash, but will be pretty close in terms of complete neutrality in relation to the data,” she added.

WEF Agenda blog post from September, 2017, lists the “gradual obsolescence of paper currency” as being “characteristic of a well-designed CBDC.”

Last year at the WEF’s 14th Annual Meeting of the New Champions, aka “Summer Davos,” in Tianjing, China, Cornell University professor Eswar Prasad said that “we are at the cusp of physical currency essentially disappearing,” and that programmable CBDCs could take us to either a better or much darker place.

“If you think about the benefits of digital money, there are huge potential gains,” said Prasad, adding, “It’s not just about digital forms of digital currency; you can have programmability – units of central bank currency with expiry dates.

You could have […] a potentially better – or some people might say a darker world – where the government decides that units of central bank money can be used to purchase some things, but not other things that it deems less desirable like say ammunition, or drugs, or pornography, or something of the sort, and that is very powerful in terms of the use of a CBDC, and I think also extremely dangerous to central banks.

The WEF’s Special Meeting on Global Collaboration, Growth and Energy Development took place from April 27-29 in Riyadh, Saudi Arabia.

“Saudi Arabia’s absolute monarchy restricts almost all political rights and civil liberties,” according to D.C.-based NGO Freedom House.

In the kingdom, “No officials at the national level are elected,” and “the regime relies on pervasive surveillance, the criminalization of dissent, appeals to sectarianism and ethnicity, and public spending supported by oil revenues to maintain power.”

Reprinted with permission from The Sociable.

Business

Trump’s Initial DOGE Executive Order Doesn’t Quite ‘Dismantle Government Bureaucracy’

Published on

 

From the Daily Caller News Foundation

By Thomas English

President Donald Trump’s Monday executive order establishing the Department of Government Efficiency (DOGE) presents a more modest scope for the initiative, focusing primarily on “modernizing federal technology and software.”

The executive order refashions the Obama-era United States Digital Service (USDS) into the United States DOGE Service. Then-President Barack Obama created USDS in 2014 to enhance the reliability and usability of online federal services after the disastrous rollout of HealthCare.gov, an insurance exchange website created through the Affordable Care Act (ACA). Trump’s USDS will now prioritize “modernizing federal technology and software to maximize efficiency and productivity” under the order, which makes no mention of slashing the federal budget, workforce or regulations — DOGE’s originally advertised purpose.

“I am pleased to announce that the Great Elon Musk, working in conjunction with American Patriot Vivek Ramaswamy, will lead the Department of Government Efficiency (‘DOGE’),” Trump said in his official announcement of the initiative in November. “Together, these two wonderful Americans will pave the way for my Administration to dismantle Government Bureaucracy, slash excess government regulations, cut wasteful expenditures, and restructure Federal Agencies.”

The order’s focus on streamlining federal technology and software stands in contrast to some of DOGE’s previously more expansive aims, including Elon Musk’s claim that “we can [cut the federal budget] by at least $2 trillion” at Trump’s Madison Square Garden rally in November. Musk now leads DOGE alone after Vivek Ramaswamy stepped down from the initiative Monday, apparently eying a 2026 gubernatorial run in Ohio.

The order says it serves to “advance the President’s 18-month DOGE agenda,” but omits many of the budget-cutting and workforce-slashing proposals during Trump’s campaign. Rather, the order positions DOGE as a technology modernization entity rather than an organization with direct authority to enact sweeping fiscal reforms. There is no mention, for instance, of trillions in budget cuts or a significant reduction in the federal workforce, though the president did separately enact a hiring freeze throughout the executive branch Monday.

“I can’t help but think that there’s more coming, that maybe more responsibilities will be added to it,” Susan Dudley, a public policy professor at George Washington University, told the Daily Caller News Foundation. Dudley, who was also the top regulatory official in former President George W. Bush’s administration, said the structure of the new USDS could impact the recent lawsuits against the DOGE effort.

“I think it maybe moots the lawsuit that’s been brought for it not being FACA,” Dudley said. “So if this is how it’s organized — that it’s people in the government who bring in these special government employees on a temporary basis, that might mean that the lawsuit doesn’t really have any ground.”

Three organizations — the American Federation of Government Employees (AFGE), National Security Counselors (NSC) and Citizens for Responsibility and Ethics in Washington (CREW) — separately filed lawsuits against DOGE within minutes of Trump signing the executive order. The suits primarily challenge DOGE’s compliance with the Federal Advisory Committee Act (FACA), alleging the department operates without the required transparency, balanced representation and public accountability.

The order also emphasizes not “be construed to impair or otherwise affect … the authority granted by law to an executive department or agency, or the head thereof; or the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.”

“And the only mention of OMB [Office of Management and Budget] is some kind of boilerplate at the end — that it doesn’t affect that. But that’s kind of general stuff you often see in executive orders,” Dudley continued, adding she doesn’t “have an inside track” on whether further DOGE-related executive orders will follow.

“It’s certainly, certainly more modest than I think Musk was anticipating,” Dudley said.

Trump’s order also establishes “DOGE Teams” consisting of at least four employees: a team lead, a human resources specialist, an engineer and an attorney. Each team will be assigned an executive agency with which it will implement the president’s “DOGE agenda.”

It remains unclear whether Monday’s executive order comprehensively defines DOGE, or if additional orders will be forthcoming to broaden its mandate.

Continue Reading

Business

Opposition leader Poilievre calling for end of prorogation to deal with Trump’s tariffs

Published on

From Conservative Party Communications

The Hon. Pierre Poilievre, Leader of the Conservative Party of Canada and the Official Opposition, released the following statement on the threat of tariffs from the US:

“Canada is facing a critical challenge. On February 1st we are facing the risk of unjustified 25% tariffs by our largest trading partner that would have damaging consequences across our country. Our American counterparts say they want to stop the illegal flow of drugs and other criminal activity at our border. The Liberal government admits their weak border is a problem. That is why they announced a multibillion-dollar border plan—a plan they cannot fund because they shut down Parliament, preventing MPs and Senators from authorizing the funds.

“We also need retaliatory tariffs, something that requires urgent Parliamentary consideration.

“Yet, Liberals have shut Parliament in the middle of this crisis. Canada has never been so weak, and things have never been so out of control. Liberals are putting themselves and their leadership politics ahead of the country. Freeland and Carney are fighting for power rather than fighting for Canada.

“Common Sense Conservatives are calling for Trudeau to reopen Parliament now to pass new border controls, agree on trade retaliation and prepare a plan to rescue Canada’s weak economy.

“The Prime Minister has the power to ask the Governor General to cut short prorogation and get our Parliament working.

“Open Parliament. Take back control. Put Canada First.”

Continue Reading

Trending

X